Calculating Return on Asset

Calculating Return on Asset

By calculating RoA we can see how efficient a business is using its assets to generate earnings.

The Return on Asset (RoA) calculation is one of the best measures for evaluating and comparing investments. To create financial wealth your business must not only be operating well, but you must make wise investment decisions and select options that give you positive returns.

In this video, Paul Bird, DairyNZ Business Performance, explains the Return on Asset (RoA) calculation and how a dairy farm business can use the RoA equation for decision making.